A new report from Navigant Research examines and sizes the global commercial market for connected lighting, including hardware, software, and services within commercial buildings, from 2019 through 2028.
The commercial lighting market is shifting as controls become more sophisticated. LEDs have provided the foundation for increased adoption of lighting controls and generated greater interest and adoption of connected lighting systems. According to the report, global annual revenue for connected lighting systems is expected to experience a compound annual growth rate of 17.6%, reaching $6 billion in 2028.
“Connected lighting solutions deliver business value and insight by leveraging advanced sensors and analytics that drive efficiency and enable occupant controllability,” says Krystal Maxwell, senior research analyst with Navigant Research. “They may also integrate with other automation systems to coordinate operations of HVAC, security and access, facility scheduling, and maintenance systems to deliver even greater financial and business benefits.”
Although the connected lighting market has seen slow growth, a number of factors are helping to drive the market forward. Beyond LEDs, other key drivers are energy savings, the growth of IoT and connected devices, but also non-mandatory building codes, or quality organizations, such as the DesignLights Consortium (DLC), that certify products meet a set of quality requirements.